Tweeter may reopen under Chapter 7
FROM TWICE: Motion to convert from Chapter 11 granted by federal court
By Alan Wolf of TWICE -- Video Business, 12/4/2008
DEC. 4 | FROM TWICE: NEW YORK--Tweeter could reopen its stores as early as tomorrow morning to continue liquidation sales through the weekend under Chapter 7.A motion by the retailer to convert from Chapter 11 to Chapter 7 bankruptcy was granted by a federal court here yesterday after the company shut all its stores and terminated its staff. The conversion will free up cash, allowing Tweeter to continue liquidating its inventory and real estate, and will provide for a $900,000 fund from which employees are to be immediately paid accrued wages and commissions.
TWICE has received reports from Tweeter workers who were either told to return to work tomorrow or received inquiries about their availability. Whether the stores will reopen remains unclear, however, as the headquarters office has essentially ceased operations and Tweeter’s liquidators have filed an objection to the Chapter 7 conversion, demanding immediate payment of about $1.8 million for services rendered.
Read the full story on TWICE.com.
